Govt nearing target for 100,000 PPA1M units by 2018
The government has almost achieved its target of building 100,000 units of 1Malaysia Civil Servants’ Housing (PPA1M) throughout the country by 2018, with the launch of the PPA1M Metropolitan Kepong project. It is being developed by the JL99 Group on a 8.2-acre land and comprises two apartment blocks with 1,230 units. As of May 2016, a total of 148 PPA1M projects comprising 82,012 housing units have been approved by the government and are now in various stages of implementation. PPA1M units are about 30% lower than market prices, but owners of these units cannot sell them within a period of 10 years. (Astro Awani)

‘I Love My Strata’ campaign in Klang Valley to resolve housing problems
Residents of strata-titled properties in the Klang Valley can take advantage of the ‘I Love My Strata” campaign being conducted at public housing projects (PPR) to resolve housing problems. The campaign, carried out by the government in collaboration with Syarikat Skyworld, will benefit about 1.2 million residents living in 40 PPR and 5,000 strata developments including apartments and condominiums around the capital. The campaign will be carried out for one and a half years, comprises three phases, the first phase involves the PPR and low-cost apartments, the second phase of medium cost apartments, while the third phase involves luxury condominiums. It will focus on fostering strata community awareness with emphasis on cleanliness, surveillance to monitor vandalism and of public property in the PPR area. It also aims to improve the quality of living standards and social relationships among residents. (The Star Online)

MRCB bags Kwasa Damansara infrastructure PDP job
Malaysian Resources Corp Bhd’s (MRCB) wholly-owned subsidiary MRCB Builders Sdn Bhd has bagged the contract as the project delivery partner (PDP) to build the main infrastructure of Kwasa Damansara township, and will receive a fee of 5% the estimated RM2.2 billion development cost. The infrastructure works will be divided into multiple phases, and will begin within a year after obtaining the relevant authorities’ approvals and work permits. These infrastructure include those pertaining to water, electricity, roadworks, and earthworks. The development will sit on 2,330 acres of the former Rubber Research Institute Malaysia land in Sungai Buloh, and construction carried out in phases is expected to take five to six years. (The Edge Markets)

IJM sees 65% rise in net profit for FY16
IJM Corp Bhd reported a 65% jump in net profit to RM793.6 million for the financial year ended March 31, although revenue fell 5.9% to RM5.13 billion. The higher earnings were attributed to one-off gains from disporal of equity interests in subsidies, and fair value gains  of its equity interests in Jaipur-Mahua Tollway Pte Ltd and Swarna Tollway Pte Ltd totalling RM301.9mil in the current year. Lower revenue was mainly due to lower contribution from property development and plantation divisions. The group expects its construction division to perform well based on its strong order book. (The Star Online)

The Paradigm Mall brand of shopping malls by WCT will be part of the portfolio under its REIT that will be launched in 2H next year. (Photo from LocatedAt)

WCT delays construction IPO but earlier launch for REIT
Construction-property company WCT is delaying its construction initial public offering (IPO) but plans to launch its real estate investment trust (REIT) initiative earlier. WCT is deferring its construction IPO from 4Q16 to 2Q17 due to requirement and administrative issues. The potential RM1bil to RM1.5bil market cap listed company will emerge after the REIT for its two malls. Meanwhile, CIMB Research noted that WCT’s RM600mil FY16 property sales target is questionable given the soft market, but was optimistic on its RM2 billion order win target from infrastructure and highway jobs. (The Star Online)

Mah Sing records property sales of RM536mil in Jan-April
Mah Sing Group Bhd recorded property sales of RM536 million from January to April this year, and plans to launch projects worth RM1.8 billion in the second half of 2016. It posted earnings of RM95.03mil in the first quarter, a slight dip from RM98.89mil last year. Among the main points of its Q1 financial performance was a healthy balance sheet with cash pile of RM1.1bil and net gearing of only 0.09 times, which gave it the flexibility to respond to land acquisitions and investment opportunities. Its unbilled sales of RM4.53 billion from property will provide ample short term liquidity. (The Star Online)

E&O achieves record property sales in FY16
Eastern & Oriental Bhd (E&O) has achieved a record RM1.1 billion in property sales for its financial year ended March 31, 2016. Managing director Datuk Seri Terry Tham Ka Hon said the good results were due to the company adopting prudent cashflow management, restrategising and intensifying its marketing efforts, including extending its marketing reach and initiating new approaches to drive sales for its projects across Penang, Iskandar Malaysia in Johor and the Klang Valley. E&O said continued global uncertainties, both in the economic and geopolitical spheres, have weighed negatively on an already softening property development landscape in Malaysia. (The Edge Markets)